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Rate Information

Budget and Rates Process  

As a public utility, we set rates to cover the costs of essential services. This includes the cost of providing safe, reliable services, maintaining our systems, protecting natural resources near our facilities, complying with regulations, supporting a specialized workforce, and investing in upgrades that improve your services.   

We operate on a biennial budget cycle. This fall, our 2027-2028 budget will go to the Public Utility Board and Tacoma’s City Council for approval. Our proposal will include rate adjustments for water and power. Rate adjustments for Wastewater, Solid Waste, and Stormwater are prepared by Environmental Services.

Learn how we support our customers with payment assistance programs and ways to manage your bill.

Payment Assistance Programs

Learn About the Budget and Rates Process

View our Budget and Rates Process Video

Proposed 2027-2028 Rate Adjustments

The proposals show the estimated average monthly adjustment as a percentage and dollar amount. Actual monthly charges will vary based on use.

Tacoma Power

  • 2027 – 6.2% or $7.40 monthly *
  • 2028 – 6.2% or $8.59 monthly *

Rate adjustment goes into effect in April each year.

Tacoma Water

Inside City of Tacoma

  • 2027 – 5.6% or $2.99 monthly
  • 2028 – 5.6% or $3.17 monthly

Outside City of Tacoma*

  • 2027 –  5.6% or $3.59 monthly
  • 2028 – 5.6% or $3.74 monthly

Rate adjustment goes into effect in January each year.

*Rates in University Place are slightly higher due to a 6% utility tax from the City of U.P.

The proposals show the estimated average monthly adjustment as a percentage and dollar amount. Actual monthly charges will vary based on use.

Tacoma Power

Small General Business (B rate)

  • 2027 – 8.1% or $12.52 monthly *
  • 2028 – 8.1% or $15.16 monthly *

General Business (G rate)

  • 2027 – 10.8% or $418 monthly *
  • 2028 – 10.8% or $535 monthly *

Rate adjustment goes into effect in April each year.

Tacoma Water

Commercial

Inside the City
  • 2027 – 5% or $19.86 monthly
  • 2028 – 5% or $20.98 monthly
Outside the City of Tacoma
  • 2027 – 5% or $23.80 monthly*
  • 2028 – 5% or $25.12 monthly*

Parks & Irrigation

CCF (Variable)
  • 2027 5.6%
  • 2028 5.6%

Rate adjustment goes into effect in January each year.

*Rates in University Place are slightly higher due to a 6% utility tax from the City of U.P.

Residential Rate Information

Commercial Rate Information

Shoreline at Cushman Dam

What Rates Cover

Utility rates support the full cost of delivering reliable service by funding the operation and maintenance of essential infrastructure, investing in technology upgrades that strengthen long-term system reliability, and protecting the natural resources surrounding utility facilities.
Crew lowered into the generator cavity.

How We Control Rates

We work hard to manage costs by rebuilding and maintaining equipment instead of purchasing new, prioritizing projects that support safety and reliability, and keeping staff levels steady. We also actively pursue awards, grants, and other funding sources that reduce reliance on customer dollars, encourage recycling across our operations, and look for every opportunity to lower ongoing operations and maintenance expenses.

Factors Impacting Rates

Infrastructure costs continue to rise as utilities work to maintain and improve essential systems.

This includes things like:

  • ongoing pole replacements
  • upgrades to electric system equipment such as transformers, and routine substation maintenance
  • drinking water main and pipe replacements

Operational costs are increasing as well, including:

  • competing for specialized labor
  • investing in new technologies
  • adapting operations to address the impacts of climate change
  • complying with evolving regulatory and legal requirements
  • rising health care expenses

Together, these factors influence the rates needed to maintain safe, reliable, and sustainable utility services.

Inside Green River Headworks shows large blue water mains and employees standing below in safety vests.

Green River Headworks Green River Headworks

Ways to get involved

View Presentations to the Public Utility Board
View Calendar of Upcoming Outreach Events
Submit Comments and Feedback

Budget Timeline

January - June

Divisions review planned projects for 2027-2028, estimate costs for materials, labor, and operations, and forecast biennium revenue to determine if rate adjustments are needed for a balanced budget.

Jan 1 - June 30

July

Divisions present their draft budget and rate proposals to the Public Utility Board for review and consideration.

July 1-31

August - September

Community outreach on rate proposals.

Aug 1- Sept 30

October

Public Utility Board holds first and second readings and votes on the budget and rate proposals.

October 1-31

November - December

Tacoma City Council holds first and second readings and votes on the budget and rate proposals.

Nov 1- Dec 31

Ways to Manage Your Bills

Budget Billing
Payment Options
Power and Water Conservation
Payment Assistance Programs